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SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2019

The Company’s total net revenues during the three months ended March 31, 2019 and 2018 are presented in the table below based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in thousands):



	Three Months Ended March 31,
	2019		2018
Commercial insurance	$	151,678	$	126,225
Medicare	54,199		44,076
Medicaid	7,120		6,048
Workers' compensation/personal injury	11,027		8,431
Other patient revenue	5,835		5,606
Management fee revenue	2,117		3,677
Teleradiology and Software revenue	4,386		3,816
Other	6,310		6,289
Service fee revenue	242,672		204,168
Revenue under capitation arrangements	28,877		27,224
Total revenue	$	271,549	$	231,392

Schedule of goodwill and other intangible assets

Activity in goodwill for the three months ended March 31, 2019 is provided below (in thousands):



Balance as of December 31, 2018	$	418,093
Adjustments to our preliminary allocation of the purchase price of Medical Arts Radiological Group, P.C.	722
Goodwill acquired through the acquisition of certain assets of Dignity Health	1
Goodwill acquired through the acquisition of certain assets of West Valley Imaging Center, LLC	2,490
Goodwill disposed through sale of assets	(123		)
Goodwill acquired by Lenox Hill Radiology through the membership purchase of HVRA	3,125
Balance as of March 31, 2019	$	424,308

Effect of derivative instruments on comprehensive income

A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss is as follows (amounts in thousands):



For the three months ended March 31, 2019
Account	January 1, 2019 Balance	Amount of comprehensive loss recognized on derivative		March 31, 2019 Balance	Location
Accumulated Other Comprehensive Income (Loss)	2,506	(1,196	)	1,310	Current Assets & Equity



For the twelve months ended December 31, 2018
Account	January 1, 2018 Balance		Amount of comprehensive gain recognized on derivative	December 31, 2018 Balance	Location
Accumulated Other Comprehensive (Loss) Income	(370	)	2,876	2,506	Current Assets & Equity

Schedule of fair value of assets and liabilities

The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):



	As of March 31, 2019
	Level 1		Level 2		Level 3		Total Fair Value		Total Face Value
First Lien Term Loans and SunTrust Term Loan	$	—	$	638,144	$	—	$	638,144	$	637,420



	As of December 31, 2018
	Level 1		Level 2		Level 3		Total		Total Face Value
First Lien Term Loans and SunTrust Term Loan	$	—	$	633,229	$	—	$	633,229	$	646,441

The table below summarizes the estimated fair values of certain of our financial assets that are subject to fair value measurements, and the classification of these assets on our consolidated balance sheets, as follows (in thousands):



	As of March 31, 2019
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	—	$	1,690	$	—	$	1,690



	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	—	$	3,316	$	—	$	3,316

Earnings per share

Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury, as follows (in thousands except share and per share data):



	Three Months Ended March 31,
	2019			2018
Net loss attributable to RadNet, Inc.'s common stockholders	$	(3,733	)	$	(7,338	)

BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period	49,553,694			47,822,618
Basic and diluted net loss per share attributable to RadNet, Inc.'s common stockholders	$	(0.08	)	$	(0.15	)

Investment in joint ventures

The following table is a summary of our investment in joint ventures during the three months ended March 31, 2019 (in thousands):



Balance as of December 31, 2018	$	37,973
Equity in earnings in these joint ventures	1,873
Sale of ownership interest	(134		)
Balance as of March 31, 2019	$	39,712

Joint venture investment and financial information

The following table is a summary of key balance sheet data for these joint ventures as of March 31, 2019 and December 31, 2018 and income statement data for the three months ended March 31, 2019 and 2018 (in thousands):



Balance Sheet Data:	March 31, 2019			December 31, 2018
Current assets	$	33,301		$	28,317
Noncurrent assets	59,804			45,912
Current liabilities	(8,244		)	(4,300		)
Noncurrent liabilities	(15,881		)	(4,898		)
Total net assets	$	68,980		$	65,031

Book value of RadNet joint venture interests	$	31,738		$	30,030
Cost in excess of book value of acquired joint venture interests	7,974			7,943
Total value of Radnet joint venture interests	$	39,712		$	37,973

Total book value of other joint venture partner interests	$	37,242		$	35,001



Income statement data for the three months ended March 31,	2019		2018
Net revenue	$	27,254	$	44,546
Net income	$	3,952	$	6,250